New Southbound Access tool for US stock investments — Ping An Asset Management (Hong Kong)'s two 'Hong Kong + US' ETFs added to Stock Connect today

The latest扩容 list for Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, recently published by the three exchanges in Shanghai, Shenzhen, and Hong Kong, includes eight newly-added ETFs under Southbound Connect, effective fromtoday (May 6), including two 'Hong Kong + US' ETFs managed by Ping An Asset Management (Hong Kong):

Ping An East-West Equity Selection ETF (Stock Connect short name and code: Ping An East-West Selection (03477))

Ping An Technology Selection ETF (Stock Connect short name and code: Ping An Technology Selection (03406))。

Since the launch of the 'ETF Connect' in July 2022, trading in the ETF互联互通 between Hong Kong and mainland China has remained highly active. In April 2024, the Hong Kong Stock Exchange announced for the first time the expansion of the range of eligible ETFs under the Connect program.

This policy lowers the threshold for Southbound ETF Connect by reducing the proportion of Hong Kong stocks within all tracked indices from no less than 90% to no less than 60%, meaning up to 40% of assets can be invested in other markets, further enriching product options for investors under Shanghai-Hong Kong and Shenzhen-Hong Kong Connect and allowing them to diversify their assets in Hong Kong more efficiently.

ETFs that meet the new inclusion criteria in 2024 (with investment in Hong Kong stocks not less than 60% and other markets not more than 40%) are colloquially referred to as 60/40 ETFs in the market. The Ping An East-West Equity Selection ETF and Ping An Technology Selection ETF included this time by Ping An Asset Management (Hong Kong) are such products,Both track indices maintaining a weighting of 62% in Hong Kong market stocks and 38% in US market stocks.

The Solactive Global Pacific Equity Select Index (HKD Net Return) tracked by Ping An East-West Equity Select ETF builds an asset portfolio spanning across the US and Chinese markets:

62% of the weighting covers high-dividend stocks in the Hong Kong market, including traditional industries such as finance and real estate, focusing on stable cash flow and downside resistance;

38% of the weighting is allocated to large-cap blue-chip stocks in the US; this ETF includes sectors with both value and growth characteristics, such as technology, consumer goods, and healthcare.

The Wind Technology Select Index (HKD Net Return) tracked by Ping An Technology Select ETF focuses on the US-China tech sector, covering approximately 60 leading publicly traded technology companies in the US and China, with index components including cutting-edge fields such as AI, internet, and semiconductors.

Index constituent stocks cover except$NVIDIA (NVDA.US)$ $Apple (AAPL.US)$ $Amazon (AMZN.US)$ $Alibaba (BABA.US)$ In addition to leading technology companies, core targets in the hard tech industry chain are also included, such as: leading memory chip companies $Micron Technology (MU.US)$ , semiconductor communication chip giants$Broadcom (AVGO.US)$ , AI communication standout stocks $Arista Networks (ANET.US)$ , CPU chip giants$Intel (INTC.US)$ 、 $Advanced Micro Devices (AMD.US)$ , and leading semiconductor equipment companies $KLA Corp (KLAC.US)$ ， $Lam Research (LRCX.US)$ and $Applied Materials (AMAT.US)$ The individual securities mentioned in this article are for illustrative purposes only and do not constitute any investment advice or recommendation.

Wang Xinyi, Head of Capital Markets and Chief Investment Officer of Ping An Asset Management (Hong Kong), stated: 'The Ping An East-West Equity Selection ETF and Ping An Technology Selection ETF aim to provide broader coverage of the Hong Kong and US stock markets. The index tracked by the Ping An East-West Equity Selection ETF achieves diversified allocation across multiple industries and countries, balancing stable cash flow with risk diversification. Currently, the AI technology industries in both China and the US are receiving significant investor attention, and the Ping An Technology Selection ETF focuses on key segments of the AI and technology industrial chain, helping investors seize opportunities brought by the AI revolution across the entire industry chain.'

The annual management fee for both ETFs is 0.55%.They aim to help investors build cross-market, cross-industry portfolios at a relatively low cost.

Important disclaimer

This press release was issued by Ping An Asset Management (Hong Kong). It is not an offer to invest. Investment involves risks; historical performance of any product referenced in this press release (“the Product”) does not guarantee future returns. Due to market fluctuations, the value of the Product may fluctuate, and there is a risk of principal loss. Investors should carefully read the sales documents of the Product to obtain further information, including risk factors, and consider their own financial situation and the risks associated with the fund. If in doubt, seek independent financial and professional advice. Sales documents can be found on the Ping An Asset Management (Hong Kong) website. This press release and the Ping An Asset Management (Hong Kong) website have not been reviewed by the SFC.

Risk Disclosure

The Ping An East-West Stock Selection ETF (“East-West Stock Selection ETF”) is an exchange-traded index-tracking fund that aims to track the performance of the Solactive Global Pacific Stock Selection HKD Net Return Index (hereinafter referred to as the “Solactive Index”); the Ping An Technology Stock Selection ETF (“Technology Stock Selection ETF,” collectively with the East-West Stock Selection ETF, referred to as “these funds”) is an exchange-traded index-tracking fund that aims to track the performance of the Wind Technology Stock Selection HKD Net Return Index (together with the Solactive Index, referred to as the “relevant indices”). The returns of the East-West Stock Selection ETF and the Technology Stock Selection ETF may deviate from the returns of the relevant indices they track;

The East-West Stock Selection ETF tracks the performance of companies listed in Hong Kong and the United States, while the Technology Stock Selection ETF tracks the performance of the largest technology companies by market capitalization listed in mainland China and the United States, thus these funds are exposed to concentration risk. Changes in economic, political, policy, foreign exchange, liquidity, tax, legal, or regulatory events, as well as settlement or custody risks in these regions may also adversely affect the investment value of these funds;

There is no guarantee of principal repayment, and your investment in these funds may incur losses;

The trading price of these fund units on the SEHK may fluctuate due to market factors (such as supply and demand for fund units) and trade at a premium/discount to the net asset value. Furthermore, the extent of premium or discount of these fund unit prices to the net asset value may increase due to differences in trading hours between these overseas stock exchanges and the SEHK;

Investing involves risks, and the East-West Stock Selection ETF and the Technology Stock Selection ETF may not be suitable for all investors. Investors should carefully read the offering documents and product key facts statements of these funds to understand further details (including various risk factors), and consider their own investment objectives and other circumstances before investing;

The index-based investment approach of these funds aims to achieve investment performance closely aligned with the relevant indices through the use of a replication strategy or a representative sampling strategy (see the description of investment strategies in the offering documents and product key facts statements of these funds).

$NVIDIA (NVDA.US)$$Apple (AAPL.US)$$Amazon (AMZN.US)$$Micron Technology (MU.US)$$Broadcom (AVGO.US)$$Arista Networks (ANET.US)$$KLA Corp (KLAC.US)$$Lam Research (LRCX.US)$$Applied Materials (AMAT.US)$$Advanced Micro Devices (AMD.US)$$Intel (INTC.US)$$Ping An East-West Select ETF (03477.HK)$$Ping An Technology Select ETF (03406.HK)$$Ping An of China CSI HK Dividend ETF (03070.HK)$$Dow Jones Industrial Average (.DJI.US)$$NASDAQ 100 Index (.NDX.US)$$Hang Seng Index(Net Total Return Index) (800173.HK)$$Hang Seng TECH Index (800700.HK)$$CSI 300 Index (800122.HK)$ $NASDAQ (NASDAQ.US)$$NASDAQ 100 Index (.NDX.US)$$Hang Seng TECH Index (800700.HK)$

159K Views